PhysicWallah has laid off 120 employees based on a cyclical performance review, reports said on November 19, days after speculations were rife that the edtech unicorn has asked scores of its staffers to exit the company.
The decision to lay off the 120 employees was taken following a mid-term appraisal analysis in October, the Economic Times reported, citing a top official of the company.
The official was responding to the newspaper’s query on social media posts that made unverified claims of around 500 staffers being laid off by PhysicsWallah.
Entrackr, which was first to report the development, quoted Satish Khengre, chief human resources officer of PhysicsWallah, as saying that “less than 0.8 percent of our workforce, ranging from 70 to 120 individuals with performance concerns—may be asked to transition” based on the performance review for the period ending in October.
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The company is planning to hire 1,000 more employees in the period of next six months, Khengre told ET, adding that the plan reinforces its commitment to growth.
Notably, PhysicsWallah turned unicorn last year, after it raised $100 million from WestBridge Capital and GSV Ventures at a valuation of $1.1 billion. The company was founded in 2020 by Youtube teacher Alakh Pandey.
The company had reported a net profit of ₹97.8 crore in FY22, 14 times higher as compared to ₹6.93 crore in the previous financial year. The standalone operational revenue jumped nine-fold to ₹232.48 crore.
Pandey, while speaking to Moneycontrol last year, said the company expects revenue to top ₹1,200 crore in FY23, the margin of earning before interest, taxes, depreciation and amortisation (EBITDA) coming in at 40-45 percent.
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